Markets in Mumbai are bracing for potential volatility as tensions between the US and Iran escalate, particularly following Iran's closure of the Strait of Hormuz, which has led to a significant rise in oil prices. Last week, the Sensex and Nifty indices saw gains of up to 1.3%, with broader indices like the Nifty Midcap 150 and Smallcap 250 rising 3.5% and 4.4% respectively. However, analysts predict that the rupee may open weaker, potentially slipping 30-35 paise against the dollar due to the renewed geopolitical tensions and rising oil prices. On Friday, Brent crude oil prices had dropped 9% to $90.38 per barrel when Iran announced the Strait would be open, but the recent developments have reversed this trend. The Reserve Bank of India (RBI) may intervene to stabilize the rupee, particularly if oil prices approach the $100 per barrel mark. The market's future direction could hinge on the outcome of ongoing diplomatic discussions and the performance of major banks in their fourth-quarter earnings.